Is NASDAQ:NVDA on the Verge of a Major Breakout as a Strong Growth Stock?

Last update: Dec 25, 2024

In this article we will dive into NVIDIA CORP (NASDAQ:NVDA) as a possible candidate for growth investing. Investors should always do their own research, but we noticed NVIDIA CORP showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Exploring NASDAQ:NVDA's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:NVDA scores a 9 out of 10:

The Earnings Per Share has grown by an impressive 201.27% over the past year.
The Earnings Per Share has been growing by 50.90% on average over the past years. This is a very strong growth
NVDA shows a strong growth in Revenue. In the last year, the Revenue has grown by 152.44%.
The Revenue has been growing by 39.06% on average over the past years. This is a very strong growth!
Based on estimates for the next years, NVDA will show a very strong growth in Earnings Per Share. The EPS will grow by 35.63% on average per year.
The Revenue is expected to grow by 35.61% on average over the next years. This is a very strong growth

Evaluating Health: NASDAQ:NVDA

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:NVDA scores a 8 out of 10:

NVDA has an Altman-Z score of 73.47. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
NVDA's Altman-Z score of 73.47 is amongst the best of the industry. NVDA outperforms 97.22% of its industry peers.
The Debt to FCF ratio of NVDA is 0.15, which is an excellent value as it means it would take NVDA, only 0.15 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.15, NVDA belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that NVDA is not too dependend on debt financing.
A Current Ratio of 4.10 indicates that NVDA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.10, NVDA is in the better half of the industry, outperforming 65.74% of the companies in the same industry.
NVDA has a Quick Ratio of 3.64. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA's Quick ratio of 3.64 is fine compared to the rest of the industry. NVDA outperforms 70.37% of its industry peers.

Evaluating Profitability: NASDAQ:NVDA

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:NVDA scores a 10 out of 10:

The Return On Assets of NVDA (65.69%) is better than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 95.71%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NVDA has a better Return On Invested Capital (78.60%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NVDA is significantly above the industry average of 11.13%.
The last Return On Invested Capital (78.60%) for NVDA is above the 3 year average (31.07%), which is a sign of increasing profitability.
NVDA has a better Profit Margin (55.69%) than 98.15% of its industry peers.
NVDA's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 62.71%, NVDA belongs to the best of the industry, outperforming 99.07% of the companies in the same industry.
NVDA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 75.86%, NVDA belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
In the last couple of years the Gross Margin of NVDA has grown nicely.

How does the Setup look for NASDAQ:NVDA

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:NVDA currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

NVDA has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 137.17, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of NVDA

Our latest full technical report of NVDA contains the most current technical analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.